Implementation one step closer with both governments now reviewing the FTA before ratification
Indian minister for commerce and industry Piyush Goyal and New Zealand trade and investment minister Todd McClay met in New Delhi on 27 April to sign the new India-New Zealand Free Trade Agreement.
Negotiations on what has been described as a “historic” FTA concluded in December 2025, and the agreement will now be presented to the New Zealand parliament and the Indian cabinet for review before ratification.
The FTA is set to deliver several key outcomes for the fruit trade between the two countries. Notably, there will be a 50 per cent tariff cut for a large quota of New Zealand apple exports to India.
The tariff will be halved from 50 per cent to 25 per cent during the quota period from 1 April to 31 August. The quota will begin at 32,500 tonnes in the first year of the FTA, rising to 45,000 tonnes by year six with a minimum import price of US$1.25/kg.
New Zealand kiwifruit will also receive duty-free access within an increased quota. The quota will begin at 6,250 tonnes in year one of the FTA, rising to 15,000 tonnes by year six with a minimum import price of US$1.80/kg during the seasonal window of 1 April to 15 October. Outside of the quota, the current applicable duty of 33 per cent will be halved with a minimum import price of US$2.50/kg.
New Zealand cherries, avocados, persimmons and blueberries will also gain duty-free access over a period of ten years. Additionally, New Zealand apricot and pear exporters will have the existing 33 per cent tariff cut in half over five and 10 years respectively (to 16.5 per cent).
New Zealand Apples and Pears chief executive Danielle Adsett said the FTA could deliver direct value to provincial horticultural communities in New Zealand.
“India is currently the fifth-largest economy globally and this agreement holds untold potential for New Zealand’s pipfruit sector. It will play a pivotal role in achieving NZAPI’s ambition of becoming a NZ$2bn export sector by 2035.”
“When exports perform well, the benefits flow well beyond the orchard gate, into regional employment, household incomes and the infrastructure and services those communities depend on.”
The FTA includes the establishment of Centres of Excellence, allowing for improved planting material, capacity building for growers, collaborative research, and technical support for orchard management, post-harvest practices, supply chain performance and food safety. Projects for apple cultivators and sustainable beekeeping practices are designed to enhance production and quality standards.
“This deal will deliver thousands of jobs and billions of dollars in additional exports,” said McClay.
“Creating opportunities for our businesses to diversify and create strong trading relationships provides economic security for New Zealanders – and that is crucial in these times of global unrest.”
Indian Prime Minister Narendra Modi said the FTA marked a landmark moment in the India-New Zealand partnership
“I am delighted that the India-New Zealand FTA signed today will add unprecedented momentum to our developmental partnership. It reflects the deep trust, shared values and ambition that bind our two nations,” he said in a post on social media.
This agreement will greatly benefit our farmers, youth, women, MSMEs, artisans, startups, students and innovators. It will open new avenues for growth, create opportunities and deepen our synergy across sectors.
“The investment commitment of US$20bn by New Zealand will further strengthen our cooperation in agriculture, manufacturing, innovation and technology, paving the way for a more prosperous and dynamic future for both countries.”
